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Here from a), profit maximizing price = 7 and Q = 10. It is shown in the figure below:-
The consumer surplus is shown in blue area which is given as (9-7) *10*1/2 =10 dollar.
Monopoly with tax of 50 cents per unit
Here from c), profit maximizing price = 7.25 and Q = 8.75. It is shown in the figure below:-
The consumer surplus is shown in blue area which is given as (9-7.25 ) *8.75*1/2 =7.65625 dollar. Monopoly without tax, but with price ceiling of $6
Here from d), profit maximizing price = 7.5 and Q = 7.5. It is shown in the figure below:-
The consumer surplus is shown in blue area which is given as (9-7.5 ) *7.5*1/2 =5.625 dollar. * Perfectly competitive industry
In case of perfectly competitive,
MC = D
ð 5 = 45-5P
ð P = 8
And Q from equn i) is 5
So consumer surplus = ½ * (9-5)*5 =10 dollar.
has determined that the price elasticity of demand for two customer segments (Coach and Business Class) is -1.35 and -2.50. Based on their expectations of profitability, Kashian r
Suppose that a widget market is described by the following supply and demand equations. Supply: Q = 3 P Demand: Q =400 - P a. Solve for the equilibrium price and the
RATCHET EFFECT
can u please tell me why lag length criteria is used during estimation of VAR model? what is the purpose of lag length criteria and how it can be interpreted?
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